Ozempic maker Novo Nordisk to cut 9,000 job to save $1.3 billion annually

Novo Nordisk will cut 11.5 per cent of its workforce to save costs and streamline operations as competition rises and sales of Wegovy and Ozempic slow, especially in the US market

Danish pharmaceutical giant Novo Nordisk announced plans to cut around 9,000 jobs — roughly 11.5 per cent of its workforce, news agency Reuters reported. The move aims to save approximately $1.3 billion annually as the company faces rising competition from US rival Eli Lilly.

 

Once Europe’s most valuable listed company, Novo Nordisk, known for its weight-loss drug Wegovy, is at a critical juncture. Sales of Wegovy and its diabetes treatment Ozempic have slowed, particularly in the US, leading to a loss of market share.

 

CEO Mike Doustdar, who took charge last month, said the company must adapt to a more competitive and consumer-driven market. “Our company must evolve as well. This means instilling a stronger performance culture, using resources more efficiently, and prioritising investments in our leading therapies,” he said in a statement.   

 

 

Goals of restructuring

 

The restructuring aims to simplify the company’s operations, expedite decision-making, and reallocate resources toward growth opportunities. Analysts expect the announcement to have a positive impact on Novo Nordisk’s shares, the news report said.

 

Novo Nordisk will report one-off restructuring costs of 9 billion Danish crowns in the third quarter, including impairment charges, but expects savings of 1 billion crowns in the fourth quarter. Overall, annual savings are projected at 8 billion crowns.

 

Of the 78,400 global employees, around 5,000 job cuts will occur in Denmark. This follows a recent hiring freeze for non-critical roles. The company now expects operating profit growth of 4-10 per cent this year, down from the previous 10-16 per cent forecast due to restructuring costs, the news report said.

 

Doustdar said in a LinkedIn post, “Sometimes the hardest decisions are the right ones for the future. I am confident this is the right step for Novo Nordisk’s long-term success.”

 

The company’s shares have dropped nearly 46 per cent this year, reducing its market value to around $181 billion from a peak of $650 billion last year. Investors lost $70 billion in July after Novo issued a profit warning and announced Doustdar as CEO.   

 

Wegovy launch in India

 

In June this year, Novo Nordisk launched Wegovy in India, targetting both urban and rural markets. The drug is intended for long-term weight management and to reduce the risk of major cardiovascular events.

 

The launch includes five dose strengths — 0.25 mg, 0.5 mg, 1 mg, 1.7 mg, and a 2.4 mg maintenance dose — delivered through a weekly pen device. Prices range from ₹17,345 to ₹26,050 per month.

 

Vikrant Shrotriya, Managing Director of Novo Nordisk India, had said the company expects Wegovy to be one of the top launches in the country. The drug contains semaglutide, the same active ingredient as Ozempic, which treats type 2 diabetes but is not yet available in India.